The FIFO costing method assumes that units in beginning Work-in-Process Inventory are completed first, before any new units are started.

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The first-in, first-out (FIFO) method assumes that the oldest units in inventory (those that were first added) are sold or used first, and the units added more recently are sold or used later. In the context of Work-in-Process Inventory, this means that the units that were started first are completed first before any new units are started.

The FIFO Costing Method Assumes That Units in Beginning Work-In-Process